New aircraft: Ibom Air ready for Christmas – MD

The Managing Director and Chief Executive Officer of Ibom Air, Mfon Udom, has stated that the acquisition of two new CRJ 900s aircraft has increased capacity of Ibom Air in readiness for Christmas.

The addition brings to four, the number of new aircraft received by the airline this year 2024. The two new aircraft increased the number of CRJ 900s to seven and increased the aircraft fleets to nine – two A220-300s already in its fleets.

Mfon Udom stated earlier during the reception of the aircraft by Governor Umo Eno of Akwa Ibom State, the owner of Ibom Air, at Victor Attah international airport last week.

Mr Udom said the two aircraft were only being warmed up in domestic space but actually meant to connect regional networks to Uyo.

He also mentioned that the new International Terminal at the airport will be opened for business in December for limited flight operations.

Receiving the aircraft, Governor Umon Eno explained that the new acquisition was fully financed by the state government and further indicated readiness to finance an additional two for the airline.

Eno said the state government did not borrow to finance the aircraft.

“We’re not borrowing a dime. In fact, I am prepared to finance another two. We are ready to break the cycle of debts to let the airline be free and begin to pay dividends to the government.

‘We must increase our stake and then we must increase our internally generated revenue.

“Ibom Air, while we thank you for the wonderful management, from 2025 we must begin to receive profits from Ibom Air operations so that our investment would be worthwhile.

“I understand the process of building up but as we continue to expand let us stop a little bit and have some dividends. It will make us happy and then we will continue again. That is the way I believe business should be run.”

The Governor added: “Very soon Ibom Air will be going to the capital market because we want to diversify our shares. It is important that Ibom Air before going to the capital market would break even.

“For me, we felt if Ibom Air continues to rely on bank financing they would not break even in a short while because by the time they take the bank interest at a commercial rate, the banks are free to increase their rate at any time.

“And they give them these loans for seven years. We think we are doing well. Everything Ibom Air does is to pay back that loan and by the time it is seven years the engine of the aircraft is probably due for overhauling.

“So, they bank loans again and overhaul and come back again, it becomes a vicious cycle and we are determined to break that cycle and that is what we have done by the acquisition of these two aircraft without any bank finance.”

However, the Minister of Aviation and Aerospace Development, Festus Keyamo, has congratulated Akwa Ibom State Government on the development, saying that his ministry would on continue on the path of formulating the right policies to support this growth.

“My hearty congratulations to Akwa Ibom State Government on taking delivery of two more aircraft to add to its fleet. We are delighted about the progress we are beginning to experience regarding the growth and development of our local operators. We will continue on the path of formulating the right policies to support this growth,” said Keyamo.